GRADE 11 ECONOMICS

Chapter 11 : Natural Resources of Nepal

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Chapter 11: Natural Resources of Nepal

Introduction to Natural Resources

Natural Resources are the resources which exist naturally in the environment and can be exploited by humans to satisfy their needs or wants.

Classification: Natural resources can be classified based on renewability (renewable vs non-renewable), source of origin (biotic vs abiotic), and stage of development (potential, actual, reserve, and stock resources).

Water Resources

Water Resources Status: Nepal is the second richest country in the world and the first in Asia in terms of water resource availability. The main sources of water are surface water, groundwater, and collected rainwater.

Importance of Water Resources

1
Agricultural Development

Essential for irrigation and farming activities

2
Energy Supply

Hydroelectricity generation potential

3
Industrial Development

Water for manufacturing and processing

4
Tourism Development

Water-based recreational activities

5
Transportation

Water transport and navigation

6
ICT Development

Cooling systems for technology infrastructure

7
Public Health

Clean drinking water for healthy life

8
Forest Conservation

Maintains ecosystem and forest resources

River Classification in Nepal

First-Level Rivers
  • Major perennial rivers
  • High flow volume
  • Significant storage potential
  • Multiple utilization options
Second-Level Rivers
  • Medium-sized rivers
  • Seasonal variations
  • Moderate utilization
  • Regional importance
Third-Level Rivers
  • Small rivers and streams
  • Local significance
  • Limited utilization
  • Community water sources

Current Status of Water Resources

River Statistics: Nepal has over 6,000 rivers and streams. The water resources are being used in the forms of drinking water, irrigation, hydroelectricity generation, and other uses.

Note: 6000+ rivers in Nepal

Problems of Water Resources

1
Administrative Issues

Delays in approvals and administrative lapses

2
Economic Challenges

High operation costs for current irrigation schemes

3
Survey Limitations

Inadequate economic surveys of water resources

4
Geographic Obstacles

Mountainous terrain creating development challenges

5
Technical Constraints

Problems in drinking water, irrigation, and hydroelectricity generation

Forest Resources

Forest Definition: An area fully or partly covered by trees and shrubs is called a forest. Nepal has 35 major forest types and 118 ecosystems classified into 10 broad groups based on altitude.

Current Forest Coverage

40.36%
Forest Land

Primary forest coverage of Nepal's total land area

4.38%
Shrubs Land

Secondary vegetation coverage of total area

44.74%
Total Forest & Shrubs

Combined green coverage across the country

Legal Categorization of Forests in Nepal

National Forests
  • Community Forest: Managed by local communities
  • Collaborative Forest: Joint management approach
  • Leasehold Forest: Leased to individuals/groups
  • Protected Forest: Conserved for biodiversity
  • Religious Forest: Associated with religious sites
Private Forests
  • Privately owned forest lands
  • Individual or corporate ownership
  • Subject to government regulations
  • Limited area compared to national forests

Government Policy: The Government of Nepal has the policy to cover 40 percent of the land area of Nepal by forest to maintain ecological balance.

Protected Areas in Nepal

1
National Parks

Strictly protected areas for conservation

2
Wildlife Reserves

Areas for wildlife protection and management

3
Hunting Reserves

Managed areas for regulated hunting

4
Conservation Areas

Areas with sustainable resource use

5
Protected Areas

General category for conservation zones

6
Buffer Zone Community Forests

Community forests in buffer zones

7
Buffer Zone Leasehold Forests

Leased forests in buffer areas

8
Wetland Areas (Ramsar Sites)

Internationally recognized wetland areas

Importance of Forest Resources

1
Industrial Development

Raw materials for forest-based industries

2
Employment Generation

Creates diverse job opportunities

3
Agricultural Support

Enhances agricultural productivity

4
Energy Supply

Traditional fuelwood sources

5
Tourism Promotion

Eco-tourism and forest tourism

6
Livestock Support

Fodder and grazing areas

7
Foreign Exchange

Earnings from forest products export

8
Wildlife Habitat

Biodiversity conservation

9
Climate Mitigation

Carbon sequestration and ecological balance

Deforestation Analysis

Causes of Deforestation
  • Overpopulation pressure
  • Agricultural expansion
  • Industrialization
  • Development activities
  • Fuelwood dependency
  • Illegal logging
  • Forest fires
  • Climate change effects
  • Lack of awareness
  • Mining activities
Consequences of Deforestation
  • Fuelwood scarcity
  • Greenhouse gas increase
  • Water cycle disturbance / desertification
  • Soil erosion, landslide, and flooding
  • Decrease in agricultural and livestock products
  • Constraint to forest-based industry development
  • Loss of species
  • Reduction in exports and foreign exchange earnings
  • Decrease in quality of life

Mineral Resources

Mineral Resources are the mineral deposits naturally available for exploitation and to satisfy the current or future needs.

Importance of Mineral Resources

1
Fulfilment of Necessities

Provides essential materials for daily needs

2
Infrastructure Development

Construction materials for development projects

3
Industrial Development

Raw materials for industrial growth

4
Agricultural Modernization

Minerals for fertilizers and farming equipment

5
Employment Creation

Job opportunities in mining and processing

6
Government Revenue

Tax income from mineral operations

7
Foreign Exchange

Export earnings from mineral products

8
Defense and Warfare

Strategic minerals for national security

Problems of Mineral Resource Development

1
Policy Deficiencies

Lack of effective investor-friendly national mineral policy, mines and minerals acts and rules

2
Investment Shortage

Inadequate funding for exploration and development

3
Infrastructure Deficit

Poor transport networks and processing facilities

4
Energy Constraints

Limited power supply for mining operations

5
Skill Shortage

Lack of highly skilled human resources

6
Equipment Limitations

Inadequate scientific equipment and laboratory facilities

7
Illegal Activities

Unauthorized transactions and smuggling of minerals

8
Research Gaps

Lack of mineral-based education and research programs

Natural Resource Management & Climate Change

Natural Resource Management refers to the management of natural resources with a particular focus on how management affects the quality of life for both present and future generations.

Management Purpose: The purpose is to improve the management of land, forest, mineral, and water resources to maintain both the productive capacity and ecological functions of these resources. There is a direct relationship between natural resource depletion and environmental pollution.

Climate Change and Economic Effects

Climate Change is the average condition for about thirty years. It refers to the kind of weather that's typically expected in a region over a longer period.

Effects of Climate Change on Economy

Environmental Degradation

Ecosystem damage and resource depletion

Agricultural Impacts

Crop failure and reduced productivity

Economic Growth

Reduced GDP and development pace

Health Consequences

Disease spread and healthcare costs

Energy & Water Demand

Changed consumption patterns and scarcity

Tourism Effects

Seasonal changes and visitor pattern disruptions

Ecosystem Damage

Biodiversity loss and habitat destruction

Natural Resource Management Cycle

🌿
Resource Assessment
📊
Sustainable Planning
🛠️
Conservation Action
📈
Economic Benefits

Sustainable Vision: Effective natural resource management combined with climate change adaptation strategies is crucial for Nepal's sustainable development, ensuring that natural resources continue to support economic growth while maintaining ecological balance for future generations. The way of connecting links between environmental protection and the utilization of natural resources is natural resource management.